Why Your Business Should Embrace Open Finance → Learn More
Close Announcement Bar

There’s value in letting humans do what humans do best—being creative, imaginative and risk taking—while also letting the robots do what they do best—repetitive tasks at high volumes.

Imagine this…

Transfers between your user’s bank to another bank take too long. You want some way for the end user to hold funds in a system that can do expedited payouts.

Or, how about a scenario where your application needs some sort of intermediary funding source to send and receive funds to—or collect funds into.

Enter: the Dwolla Balance, pre-built, digital wallet functionality for businesses and a powerful component of the Dwolla Platform. By integrating this technology, fintechs and their verified users can hold or move funds in and out of their own balance as if it were a digital wallet.

By holding funds in a balance, transactions are dramatically shortened. Instead of an end-to-end payout taking a week to complete, transfer timelines can be shortened to a few hours with funds preloaded to the Dwolla Balance.

Using a digital wallet for business, and specifically the Dwolla Balance, saves up to five days in clearing time.

Funds going in and out of a Dwolla Balance are held and transferred by our financial institution partners. This prebuilt functionality allows verified customers to hold funds within an application and seamlessly transact with other users or businesses. A client can have a Dwolla Balance and initiate transactions via ACH, Real-time Payments or to a debit card with Push-to-Debit. Compare the different payment types here.

Instead of working with a bank to implement this type of funds flow, get to market quickly using a prebuilt digital wallet platform. To illustrate the value of this functionality, let’s talk through how innovators are using the Dwolla Balance as a digital wallet for business.

Balance Ledgering: Account & Transaction History

Dwolla balance that moves between Label 1, Label 2, and Label 3 for digital wallet

It’s important to start with a base level of understanding with the Dwolla Balance. Every Dwolla client has a Dwolla Balance. This wallet functionality is also created for any verified personal or business end user. One nuance of the Dwolla Balance is the ledger feature that is constantly updating the account and transaction history.

When a business initiates thousands of transactions in a month, there’s a lot of noise when looking at a bank statement and paging through the thousands of line items.With Dwolla as your digital wallet platform, there is no transaction left behind. Every activity is reportable, from failed transactions, end user onboarding and dollars sent or received.

In a Dwolla-supported marketplace, with each end user having a wallet in the form of a Dwolla Balance, the buyer is verified and can load their funds before shopping. Automatically, those funds are transferred to the seller within the application.

By integrating a payment API, the seller and buyer stay in your user experience to transact, with Dwolla’s technology integrated behind the scenes to keep track of the payments.

The marketplace facilitating these payments can charge a fee for that service, which the marketplace can automate using a “facilitator fee” functionality. Integrating the Dwolla Balance into a marketplace can be done using step-by-step guides and low-code drop-in components.

As another example, fintech companies looking to improve the user experience on their application can dramatically shorten the timeline of getting payments by initiating the disbursement from the Dwolla Balance.

Instead of waiting a week for a transaction to be processed, disbursements from the Dwolla Balance can be reconciled on the same day.

Pre-funding a Dwolla Balance allows for faster transfers once the end user is ready to initiate a transaction.

How Fintech Companies Use Dwolla

There are various use cases where it makes sense to use a digital wallet for business, either to hold funds until they need to make a payment or preload when higher volumes are expected.

Let’s imagine a scenario where a client needs to initiate 100 different disbursements at once.
Back to Top

Transfer 1 – Bank to Dwolla Balance

Transfer 1 for digital wallet: Bank to Dwolla Balance

The first step is to make sure there are enough funds available to preload the Dwolla Balance.

This can happen at any time in preparation for an expected payout scenario. On shorter deadlines, preload your balance faster using Same Day ACH and make the funds available in the Dwolla Balance on the same business day. Planning ahead? Standard ACH and Next Day ACH transactions are just as reliable.
Back to Top

Transfer 2 – Dwolla Balance to an End User’s Bank Account

Transfer 2: Dwolla Balance to and End User's Bank Account

Once the balance is loaded, a client can initiate disbursements using any combination of ACH, Real-time Payments or Push-to-Debit transactions and the mass payment feature of the Dwolla Platform.

A single API request can initiate up to 5,000 transactions at once, completing the job in roughly 15 minutes.
Back to Top

Instant Payments: Transfers Between Two Dwolla Balances

Instant Payments for digital wallet: Transfers Between Two Dwolla Balances

What’s faster than same-day payments? How about instant payments?

Switching to a peer-to-peer (P2P) payments scenario, let’s imagine your application is facilitating a payment between two users who both have a Dwolla Balance.

In this case, if funds are preloaded in the sender’s balance, once a transfer is created, funds immediately become available in the receiver’s balance.

The receiver would then have the choice to let more funds accumulate or initiate a withdrawal to the linked bank account at any time.

More Than a Feature

While this is not an exhaustive list of how the Dwolla Balance can be utilized as a digital wallet for business, these examples show how digital wallets enhance the payments experience for end users and alleviate manual processes for internal stakeholders.
Back to Top

Contact Dwolla


Stay Updated